You have a job you love, a comfortable home, and excellent life prospects. However, you have noticed that your monthly income does not cover your expenses. What should you do in such a situation? As a rule, this happens if there are unforeseen expenses in the form of a sudden illness, urgent repairs, or a car breakdown. In such a case, you can ask your buddies or family members for a loan or take out an emergency payday loan. However, if you are in a prolonged shortage of money, it becomes more and more challenging to cope with growing debts. You will learn what to do in such a situation from our review.
In case your expenses exceed your income, you should not panic. The best choice is to sit down calmly and take the following steps:
- Take charge of the situation. Collect the mandatory monthly bills and calculate the total amount. You can download a bill payment tracker to your mobile device for convenience. This way, you won’t miss anything.
- After calculating the mandatory payment amount, you can proceed to the expenditure items. Do an analysis and identify the critical items if there are any discrepancies. You should reconsider the size of your spending and give up something unnecessary (entertainment, trips to restaurants, etc.) in favor of paying for urgent payments.
- Once you’ve eliminated anything unnecessary, do the reconciliation again. Still short on finances? Try to prioritize your bills. For example, mortgage and car loan payments must be made on time. Otherwise, accumulating debts will lead to the loss of expensive assets. Insurance and utility bills are equally important. At the same time, there is no need to use the services of the most costly Internet provider. Study the contract terms of other companies whose services will cost you less.
- Cut costs. Instead of going to the nearest restaurant, take a home-cooked lunch on your lunch break. You can wash your car at home without going to a car wash. You don’t have to buy groceries at an expensive supermarket. You will reduce the cost of provisions by downloading a special price comparison application on your mobile device. It also applies to clothing stores. You don’t have to pay your last dime for a ticket to a great concert. Look online for free events you can attend.
Such little things will help you reduce your monthly expense points by about 15-20%. You can agree; that’s a pretty good start.
What to do next
So, a basic analysis was done. You should consider further actions if it does not lead to the desired result. Use cashback to replenish your wallet. You can contact a loan company to provide more flexible services if you have a clean credit history. Today, there are a lot of such organizations; you will probably be able to find one that will show loyalty.
Are you still convinced that my bills are more than i make? Try asking for a pay raise based on your workload and the value you bring to the company. You can consider part-time work: doing small services, freelancing (translations, dog walking, accounting services), and so on. In this case, you will get additional funds, and your income will significantly increase.
Try to do a general cleaning of the house. You will find many things you don’t use anymore, and you can put them on sale. You will get rid of unnecessary items in one move, and thereby, you can earn money.
As you can see, there are many options for solving financial difficulties. The main thing is not to get discouraged and make rational decisions.